Pan Asia Banking Corporation PLC reflected a steady performance amidst a multitude of adversities emerging from challenging macroeconomic conditions as the Bank reported its financial performance for the nine-month period of 2023 ended September 30, 2023, and reported a Pre-Tax Profit of Rs. 2,117 Mn, which is 238% increase compared to corresponding period last year.
This was mainly due to increased trading gains from government securities, reduced exchange losses and reduced credit costs. The interest income for the Nine-Month period in 2023 rose by 55% due to increased interest rates that prevailed during the period under review compared to the corresponding period of the previous year and the repricing effect of facilities in response to the market conditions. The interest expense for the Nine-Months in 2023 has also gone up significantly by 93% due to the steep increase in interest rates of deposits and borrowings responding to the market conditions and also growth deposits and other interest bearing liabilities.
The Net Gains from Trading increased by 381% due to increased capital gains from sale of Rupee government securities classified under Fair Value through Profit or Loss (FVPL). Director and CEO of Pan Asia Bank Naleen Edirisinghe, said, “Our resounding performance in the Nine-Month period ending 30th September 2023 demonstrates that we are well on track to meeting our ambitious targets for the year.”
“A growth of PAT of over 187% and 214% and 3Q respectively affirms the efficacy of our strategy which will be accelerated for generating greater earnings from core banking while infusing operational efficiencies.” The Bank’s Post-Tax Profit has increased by 187% to Rs. 1,242 Mn in the Nine-Month period under review, from Rs. 433 Mn during the corresponding period in the prior year due to overall excellence.
The Bank reported a Net Interest Margin (NIM) of 4.58% for the period under review. Meanwhile, the Bank reported a Return on Equity (ROE) of 7.82% and a Pre-Tax Return on Assets (ROA) of 1.30% also for the period under review. The Bank’s Earnings Per Share (EPS) for the period has increased to Rs. 2.81 from Rs. 0.98 due to improved profits.
The Total Assets of the Bank stood at Rs. 223.5 Bn as of 30th September 2023 after posting a growth of Rs. 15.5 Bn or 7% for the Nine-Month period in 2023 supported mainly by the expansion in investments in LKR government securities classified under FVPL. The Bank’s Impaired (Stage 3) Loan Ratio stood at 4.26% and Stage 3 Provision Cover stood at 47.93% as of 30th September 2023. The Bank maintains all its Capital and Liquidity ratios well above the regulatory minimum standards.
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